[Public Papers of the Presidents of the United States: William J. Clinton (1997, Book I)]
[May 28, 1997]
[Pages 659-664]
[From the U.S. Government Publishing Office www.gpo.gov]



The President's News Conference With European Union Leaders in 
The Hague, The Netherlands
May 28, 1997

    Prime Minister Kok. Ladies and gentlemen, I'm very glad to say that 
President Clinton and President Santer and I have had very productive 
and fruitful discussions this morning in the framework of our semiannual 
EU-U.S. summit on the new transatlantic agenda, including the 
transatlantic marketplace and a wide range of other issues. We have been 
making very good progress in implementing the new transatlantic agenda 
since its adoption, now 1\1/2\ years ago.
    We achieved a number of concrete results. I'll mention a few of 
them. This morning an agreement will be signed on the control on 
chemical precursors for drugs. This means an important step towards 
better controlling substances that are used for the production of 
synthetic drugs. We decided to step up our operation in the fight 
against drug trafficking in the Caribbean. This included joint studies 
on maritime cooperation, exchange of information and equipment, and 
training of police and judicial authorities.
    Negotiations have been concluded for the EU to join the U.S., Japan, 
and South Korea in the Korean Peninsula Energy Development Organization, 
KEDO, underlining our global responsibilities and shared commitment to 
strengthen nonproliferation efforts.
    In the context of the transatlantic marketplace, we will sign an 
agreement on customs cooperation that will facilitate trade and 
contribute to the fight against fraud and corruption. We also reached 
agreement on veterinary inspections, thus preventing a trade conflict 
that might otherwise have arisen on the export of meat products. And 
furthermore, we are very close to a common understanding with regard to 
the mutual recognition of norms and standards of products, the so-called 
mutual recognition agreements. I hope that we will be able to tie up 
these discussions in a few days' time.
    We have implemented the small-business initiative which bridges 
European and American small- and medium-sized enterprises by means of 
linking better business and organizing joint events. We agreed on an 
awards program to encourage democracy in civil society across the 
Continent of Europe. And apart from these agreements, we discussed a 
number of specific foreign policy issues.
    We looked back briefly on our historic meeting in Paris yesterday 
where we signed the NATO-Russia Founding Act, and we looked at some 
important meetings ahead of us, firstly, the G-7 meeting--or G-8--in 
Denver, the special session of the U.N. General Assembly on the 
environment in New York, and the NATO summit in Madrid, which is 2 
months from now. And I informed President Clinton yesterday already 
about the main elements of the upcoming European summit in Amsterdam.

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    We have had a brief meeting with representatives of the 
Transatlantic Business Dialogue. They presented us with an interim 
report that provides us with useful building blocks and inspiration to 
explore further possibilities of liberalizing trade and investment 
flows.
    In my view, ladies and gentlemen, this summit not only signifies a 
strong reconfirmation of the close ties between the United States and 
the European Union, it also provides a new impetus to our relationship 
both economically and politically. There is a lot that binds us and 
little that divides us. President Clinton has been very clear in 
reconfirming the strong American bonds with Europe.
    This morning we have carried forward our transatlantic partnership, 
a partnership that we will celebrate this afternoon during the 
commemoration of the 50th anniversary of the Marshall plan. It has been 
very inspiring, indeed, to find once again that we share common agendas, 
common values, and common goals in preparing the international community 
for the 21st century.
    So I am grateful, after the session we had, both for the substantial 
progress we have been making and for the atmosphere, the climate of 
cooperation between the United States and the European Union, because we 
know sometimes there are some minor or major problems we have to solve, 
but the positive agenda--the positive agenda--in order to shape the 
future together in the benefit of our children and grandchildren, is of 
key importance for the two of us. So I'm grateful to President Clinton 
for his presence, his contribution, and this is the end of my 
presentation.
    Thank you very much.
    President Clinton. Thank you very much, Prime Minister. Let me begin 
by thanking you and the people of The Netherlands for the warm welcome 
you have given to Hillary, to me, to our entire delegation, including 
the Secretary of State, Secretary of Commerce, three Members of the 
United States Congress who are with me and are sitting there on the 
front row, Senator Smith and Congresswoman Pelosi and Congressman 
McHugh. We are all delighted to be here.
    And I think it is very fitting that our summit is taking place in 
The Netherlands as we commemorate the 50th anniversary of the Marshall 
plan. In many ways, The Netherlands sets the model for helping fellow 
nations secure freedom and prosperity.
    Two hundred years ago, the Dutch extended loans that saved the young 
United States from bankruptcy. By the end of that decade, 200 years ago, 
fully half our national debt was owed to you. [Laughter] I trust we have 
paid it since then. [Laughter] In our century, the United States was 
proud to return the gesture. The Marshall plan, about which I'll have 
more to say later today, helped to lay the foundation for an Atlantic 
community of democracies. It planted the seeds of institutions that 
reconciled enemies and brought Western Europe together, from NATO to the 
OECD to the European Union, today one of our most valued partners.
    The Netherlands, as current president of the European Union, once 
again is leading the way as the EU carries forward its historic mission: 
building the union between its members and reaching out to expand to 
Central and Eastern Europe. A more prosperous, a more united Europe will 
not only be a stronger Europe, it will be a stronger partner for the 
United States in the 21st century.
    Through our work here, we have taken another step on the path that 
began with General Marshall's vision, working with the people of Bosnia 
to help peace take root, recognizing that we must do more to speed up 
the pace of economic reconstruction, increase funding for police 
training and monitors, work to ensure successful municipal elections and 
to ensure the ultimate effectiveness of the War Crimes Tribunal located 
here in your nation, in this city. The Dayton agreement was a good one; 
we have to make sure that it works.
    Under our new transatlantic agenda, the newest offspring of the 
Marshall spirit, which was created 18 months ago in Madrid, we're 
cooperating on a broad range of common challenges, bringing down trade 
barriers, fighting international crime and terrorism and nuclear 
proliferation and drug trafficking. Today we agreed to intensify our 
cooperation against a new problem that we face, the increasing practice 
of trafficking in women, which re-creates, in an entirely different 
context, almost a new kind of modern day slavery. And we intend to do 
what we can to stop it.
    I'm pleased that we're advancing on our goal of reducing trade 
barriers. The Prime Minister has already commented, but I'd like to 
point

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out that just in the last 6 months we have completed agreements on 
information technologies and telecommunications that lower trade 
barriers on over $1 trillion in goods and services in a way that will 
cut the costs of living, increase the productivity of business, and 
create huge numbers of new, good-paying jobs in both Europe and the 
United States.
    We've made progress on virtually all the outstanding issues, in 
difficult negotiations, on mutual recognition of each other's standards 
and testing requirements. This is very important, and I can't add to 
what the Prime Minister has said. We feel we have a breakthrough, and we 
hope it will lead to an agreement in the next few days. That would 
abolish redundant testing and inspection on a broad range of products 
worth $40 billion in annual trade.
    I thank the European Union for the work we have done today to 
strengthen our fights to keep illegal drugs out of our neighborhoods by 
agreeing to control the chemicals used to make a broad range of these 
drugs. This is a terribly important agreement.
    And we've also agreed to increase our customs cooperation to fight 
fraud, to streamline trade. And again, Mr. Prime Minister and President 
Santer, let me thank you for the decision by the EU to join in the 
Korean Peninsula Energy Development Organization. This will help us to 
make good on our commitment to freeze and eventually to dismantle North 
Korea's dangerous nuclear program.
    Today we're also announcing a joint U.S.-EU awards program for 
communities, individuals, and nongovernmental organizations that promote 
grassroots democracy in Central and Eastern Europe. This will help to 
deepen the commitment to freedom as we work to build an undivided 
continent.
    Finally, let me say the United States is grateful to the leaders of 
the European Union for making this progress possible, for building on 
the legacy that General Marshall began, for strengthening our 
partnership for democracy and prosperity as we confront the challenges 
of the 21st century.
    Thank you very much.
    President Santer. Prime Minister, Mr. President, ladies and 
gentlemen, I am happy to note that today's meeting has seen further 
progress in cementing the relationship between the European Union and 
the United States. Our trade and investment partnership is the largest 
in the world. Our stock of investment in each other's markets stands at 
$650 billion. Annual two-way trade in goods and services between us 
counts for some $400 billion. This is a formidable asset, and we are 
determined to develop it even further.
    We have made good progress since our last meeting in December. We 
have worked successfully together in the WTO to ensure the conclusion of 
two major multilateral agreements, the information technology and basic 
telecommunications agreements. We have together liberalized trade in 
goods and services worth approximately $1 trillion dollars. In the same 
spirit of joint leadership, we should now work towards a successful 
conclusion of a financial services agreement by the agreed deadline.
    We shall be signing two important agreements this morning. The 
chemical precursor agreement is designed to curb the diversion of 
chemicals used in the manufacture of illicit drugs. The customs 
cooperation agreement will facilitate trade and help combat fraud. We 
have also noted good progress in our negotiations on a mutual 
recognition agreement which will bring enormous trade benefits to both 
sides. We hope to be able, as the President expressed also, to conclude 
the agreement within the next few days.
    These are concrete examples of what we set out to achieve when we 
agreed on our new transatlantic agenda in December 1995. But the picture 
of our enhanced cooperation and joint action is even richer. Whether on 
foreign policy issues, multilateral trade, ties in many areas, social, 
scientific, educational, cultural, as well as in global challenges like 
terrorism, we are determined to make further progress under each of 
those, and we will take stock at our next summit at the end of the year.
    Our meeting has taken place against the background of commemorations 
which I consider to be of great significance. This afternoon we will 
commemorate the 50th anniversary of the Marshall plan. The United States 
helped Western Europe to get back on its feet and regenerate after a 
devastating war. We Europeans have not forgotten this invaluable support 
given by the United States.
    Last month in Rome, we commemorated the start, 40 years ago, of the 
European Economic Community. The original community of six member states 
decided in 1957 that they had to help themselves by rooting out war 
among

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them and by pledging a closer integration and solidarity. The 6 have 
become today's European Union of 15, a strong and dynamic partner of the 
United States. And together, we have on many occasions shown the way 
forward.
    And yesterday in Paris, with the signing of an agreement between 
NATO and Russia, we have entered a new era of hope, of cooperation, of 
peace and security. The United States has played a crucial role in 
achieving this result. The European Union is making its own contribution 
to the reconstruction of Central and Eastern Europe and the former 
Soviet Union through massive help, some $160 billion for the period 
between 1990 and the end of the century, almost twice what was given 
under the Marshall plan, but its most significant contribution will be 
the welcoming Central and Eastern European countries as members of the 
European Union.
    I believe that these reminders show the essential importance of the 
relationship between the European Union and the United States. For each 
of us and for the world at large, let's not forget that whenever we have 
to deal with bilateral difficulties, they are inevitable in such a vast 
relationship. We have solved them in the past; we will in the future.
    Thank you.

Single European Currency

    Q.  A question, if I may, for President Clinton. Mr. President, 
you've referred in your reference to the 50th anniversary of the 
Marshall plan, the impetus it gave towards the beginnings of greater 
European unity. How important, in your view, is the planned move to a 
single European currency to help achieve that goal, even foreseen 50 
years ago, to achieve that goal of a closer European Union?
    President Clinton. Well, first of all, the decision to do that and 
the mechanics of how to do it is a decision that has to be left to the 
members of the Union. The United States position--let me restate it 
because I feel it very strongly, and I tried to clarify it as soon as I 
got elected and assumed office--is that a more integrated, more closely 
cooperating Europe with fewer barriers to trade, to communications, to 
travel, to working together is a good thing for Europe and a good thing 
for the United States and, therefore, a good thing for the world.
    How to do that, in what order, and by what steps, I think still 
should be decisions for the Europeans to make, and I think it would be, 
frankly, not appropriate for the United States to go much further than I 
have gone in this. I think it's clear that I support European 
integration, and I've wanted to make that clear because we not only are 
not threatened by it, we are excited by it and want to support it. But 
beyond that, I think it's up to you to decide how to do it and on what 
timetable.

New Marshall Plan for Eastern Europe

    Q. Mr. President, do you support the initiative of the Dutch Prime 
Minister for a more or less new Marshall plan for Eastern Europe, and do 
you see a specific role for the U.S. in this?
    President Clinton. Well, we have together seen in the last few 
years--I believe this is roughly accurate--about $50 billion in various 
kinds of funds go into the Central and Eastern European nations, mostly 
through international financial institutions, and nearly that amount now 
in private investment. And I believe it is very important that we 
continue this process.
    We can't simply say to these countries, ``We want you to be for 
democracy and we want you to have a democracy and we want you to support 
economic reform, and good luck,'' because there is an enormous gap 
between the poorest countries on the Continent and those that aren't, 
and between their infrastructures and, therefore, their capacity to 
grow. And I think that's one thing that's easily overlooked. If you 
compare this time, say, to 50 years ago--and the Prime Minister might 
want to comment on this--but, yes, Europe was in ruins, but Europe had 
also been at the pinnacle of the global economy with lots of people who 
knew how to rebuild economies and lots of people who understood how to 
put in place the building blocks. That was wiped away from a lot of 
these countries in Central and Eastern Europe for half a century.
    So do I think we need to do more? Yes, I do. And am I prepared to 
support that? Of course I am. You know, we'd have to get into the 
details, but basically I think the Prime Minister is wise in trying to 
make sure that we don't just walk away from these nations with an 
encouragement toward economic reform and democracy and just assume that 
everything is going to be all right. We're going to have to continue to 
be engaged.
    Q. A question for President Clinton and for Mr. Kok. Are there 
already--can we talk about

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a new Marshall plan for Eastern Europe? Are there already rough lines? 
Is there any frame? I mean, are we now on a point which goes further 
than general ideas?
    Prime Minister Kok. Well, could I say, perhaps, a few words on this? 
First of all, we should not underestimate what has been done and what is 
done nowadays in the multilateral institutions. We have the European 
Bank for Reconstruction and Development, where not only European 
countries but also the United States participates. We have the World 
Bank and IMF activities. We have a lot of EU financial and political and 
economic activities giving support to the development in the Central and 
Eastern European economies. So it would be a mistake to think that until 
now, never has been done and that we just create an idea here. That 
would be wrong.
    But taking the experience of the Marshall plan into account 50 years 
ago--50 years ago and the period afterwards--we see that perhaps on top 
of what is already done, new initiatives can be taken also to bring more 
private investment capital to the development of the Eastern and Central 
European countries. We are not just for mainly talking about taxpayers' 
money; we are also talking about bringing private capital in order--for 
example, to have huge infrastructural projects. Infrastructure connects 
people.
    We see that bringing the new countries in closer to Europe, to the 
countries of the European Union, it is in their and our benefits to make 
an effort to organize creativity. And on top of what is done, I think 
new initiatives should be taken, but it could be a terrible mistake to 
think that this is only a new idea. I mean, you are already bringing it, 
to a large extent, into pass.
    President Clinton. I would just like to support what the Prime 
Minister has said. I believe the numbers I'm about to give you are 
right; if they're wrong, I'll stand corrected. I think in today's 
dollars, in today's dollars the value of the Marshall plan investments 
in Europe were about $88 billion. I think that's right. Now, we have 
seen the international financial institutions commit about $50 billion 
already to the former Communist countries, plus about $45 billion in 
private investment.
    I think that most of what still needs to be done is to accelerate 
the pace of private investment. And it's very different in different 
countries. If you look at Poland, for example, I think their growth rate 
must be about the highest in Europe now, and about 9 in 10 of the retail 
projects in Poland, retail outlets, are already in private hands. Russia 
has largely privatized huge chunks of its economy.
    But what I think we have to do is to work with each country and look 
at, first of all, what are the laws, have the laws been changed so that 
we can float private capital into these countries and have them develop; 
secondly, what kinds of public investments--hopefully, most of them 
multinational public investments through the multinational 
institutions--still need to be made before private investment can work 
for these countries.
    But if the question is, do we need to do more, I think the answer is 
yes. But then we have to look at, nation by nation, what specifically 
needs to be done and what they still need to do.
    President Santer. I only would say that the main achievement for the 
Eastern countries and Central European countries would be to achieve the 
enlargement process. These countries, there are now 10 applicant 
countries, can also access--have an accession to the European Union.
    As you know, we are working very hard, at this moment, precisely on 
this question. I think that the enlargement is a main challenge for the 
European Union to have to face for the 21st century. It is the first 
time since more than 500 years that the European Union has an historic 
chance to reconcile its own continent with itself in peace and freedom. 
And that would be the great challenge.
    And therefore, we have to prepare it. We have to prepare it through 
the preexisting strategy which we defined with many European agreements. 
We have to prepare it now also after the IGC conference under the Dutch 
presidency. And we would put forward from the European Commission at the 
15th or 16th of July under the condition that the presidency would 
succeed in Amsterdam--and I'm quite confident that it will succeed in 
Amsterdam--our opinions about the 10 applicant countries. And therefore, 
all elements are welcome to strengthen this intensity so that we can 
deal with the problems of our neighbors.
    Yesterday in Paris, there was a major step on the security level. 
Now we have to achieve it also on the economic level for the European 
Union.

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Note: The President's 146th news conference began at 11:42 a.m. in the 
Rolzall Room at Binnenhof Palace. The President met with Prime Minister 
Wim Kok of the Netherlands, President of the European Council, and 
Jacques Santer, President of the European Commission. Following the news 
conference, the three leaders witnessed the signing of a customs 
cooperation agreement and a chemical precursor agreement by Secretary of 
State Madeleine Albright, European Commission Vice President Leon 
Brittan, and Foreign Minister Hans van Mierlo of The Netherlands.